Budget increasi passed on
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THE MAJOR oil compan have dashed Chancellor of I Exchequer Nigel Lawsoi post-Budget hopes that tE would absorb the increw tax on derv.
By last weekend, Ess Shell and Texaco had all creased the scheduled price bulk dery by 1.24p per ii (5.6p per gallon), althou they point out that there still likely to be major VAT (ions in discounts available customers.
Lawson's Budget includel 1.43p per litre (6.5p per g Ion) increase in dery tax eluding VAT, but he ho[ the oil companies would 1 their profits to absorb t rather than pass it on to dustry and consumers.
The main industry trade sociations, numbed perk by the many fluctuations dery prices over the past ye have been surprisingly mu' in their comments on the companies' latest move.
The Freight Transport ) sociation has pointed out pump prices for dery are s too high in relation to pui prices for petrol.
According to ETA direct general Garry Turvey, should be 3.5p per litre (1 per gallon) cheaper than trol, as that is the tax ference, but this rare happens.
The Government has jeered calls to impost windfall tax on the oil co panics as they are passing the full increase in fuel dui imposed in the Budget.
Prime Minister Marga Thatcher told Labour lea Neil Kinnock that the companies would lose out the independents who purchasing and selling cheaper prices.
• The UK and Ireland h. among the highest fuel pri at the pump, Internatio Road Transport Uni figures show.
The Irish pay around 53 litre, with UK operatc paying 40p. Diesel bought Austria is also relatively pensive at around 40p a and is followed by West G many (36p) and France (34j